HomeMy WebLinkAbout1980-079-07/01/1980-AUTHORIZING THE CITY TO ENTER INTO A MEMORANDUM OF UNDERSTANDING WITH THE BNL DEVELOPMENT CORPORATIO r
RESOLUTION 80-79
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE CITY TO ENTER INTO A MEMORANDUM
OF UNDERSTANDING WITH THE BNL DEVELOPMENT CORPORATION
AND THE COLORADO AND SOUTHERN RAILWAY COMPANY
WHEREAS, heretofore the City of Fort Collins has entered into dis-
cussion with the BNL Development Corporation, a corporation organized under
and in accordance with the laws of the State of Delaware, and with the
Colorado and Southern Railway Company, a Colorado corporation and a sub-
sidiary of the Burlington Northern, Inc , concerning redevelopment of
property in the downtown Fort Collins area, and
WHEREAS, it is the opinion of the City Council that redevelopment is
necessary and desirable for an economically healthy downtown area and that
redevelopment of a selected parcel of land could be an inducement to
existing businesses to remain in the area and could help attract new
investment with the goal of enhancing the City and generating increased tax
revenues, and
WHEREAS, the BNL Development Corporation has proposed a phased de-
velopment for a 25 acre parcel owned by the Colorado and Southern Railway
Company, as described in the attached Memorandum of Understanding, and the
City Council is of the opinion that it is to the benefit of the City to
enter into such Memorandum of Understanding
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that the City Manager and City Clerk are hereby authorized and
directed to enter into the attached Memorandum of Understanding with BNL
Development Corporation and the Colorado and Southern Railway Company,
which sets out the responsibilities of each party thereto
Passed and adopted at a regular meeting of the City Council held
this lst day of July A D 80
M or
ATTEST
�ljity Clerk
1'
MEMORANDUM OF UNDERSTANDING
THIS MEMORANDUM OF UNDERSTANDING entered into this 22nd day of
May, 1980, by and between THE CITY OF FORT COLLINS, COLORADO, a Municipal
Corporation, hereinafter referred to as "the City," and BNL DEVELOPMENT
CORPORATION, a Corporation organized under and in accordance with the laws
of the State of Delaware, hereinafter referred to as "the Developer " The
term "Developer" is used herein and refers to BNL Development Corporation
and its associates, present and future, who are expected to act in the
capacity of controlling the projects implementation, marketing, design,
construction, financing and operation, and THE COLORADO AND SOUTHERN
RAILWAY COMPANY, a Colorado Corporation, hereinafter referred to as "the
C&S"
WITNESSETH
ARTICLE I PREAMBLE
1 The C&S, a subsidiary of the Burlington Northern Inc ,
owns approximately twenty-five (25) acres in downtown Fort Collins, north
of Mountain Avenue and west of College Avenue and hereby reserves the right
to continue operations of The Colorado and Southern Railway Company uncon-
ditionally
2 The Developer, with the consent of the C&S desires from time
to time to redevelop certain land owned by the C&S within the project
boundaries as shown on Exhibit "A"
3 It is the opinion of the City Council that redevelopment is
necessary and desirable for an economically healthy downtown area It is
further the opinion of the Council that such a redevelopment of these and
selected parcels of land not now owned by the C&S could be an inducement to
existing businesses to remain in the area and could help attract new
investment with the goal of enhancing the city and generating increased
tax revenues
4 The Developer anticipates phasing of the development of the
twenty-five (25) acre parcel All paities recognize that the total project
proposed by the Developer is of a complex, costly and time consuming
a
nature and that in order to complete the project, many conditions
must be met , and at this time , the parties are unable to determine
fully what the detailed obligations of all parties will be nor the
ability of each party to fulfill such obligations Proposals pre-
viously submitted to the City are conceptual and final details of a
definitive proposal will have to be negotiated between the Developer
and the City In order to establis'i a framework for future actions ,
the above parties now desire to enter into a preliminary contractual
relationship as expressed by this document and develop details of
the project for financing, design and implementation Continuation
of this relationship beyond a Memorandum of Understanding will
depend upon the ability of the parties to achieve satisfaction of
conditions set forth in this Agreement, as well as future negotiated
conditions
NOW, THEREFORE, by and in consideration of the above premises
and within terms and agreements , the parties hereto agree as follows
ARTICLE II FIRST PHASE DEVELOPMENT PROPOSAL
A Developers ' Responsibilities
1 Master Plan Concept Development will occur in phases
The Developer anticipates finalizing the first phase
development proposal within a reasonably short period
of time before proceeding further with the development
The first phase on 117,900 square feet of land will
include the following
(a) Replacement parking for 170 spaces now provided
in the LaPorte lot, presently operated by the
City on lease from the C$S, to property at the
northwest corner of Mason and LaPorte by a
similar lease also from the CFS
(b) An office building of 150 ,030 square feet, more
or less as the first building of the development
(c) An office building of 169 , 320 square feet, more
of less as the second building of the development
(d) A restaurant of 9,000 square feet, more or less
as ttlei third building of the development
(e) A parking structure of 500- 850 stalls that will
serve the above buildings and the surrounding
areas in the downtown
Financing of the entire Phnse I development ►vill be
by joint ventuie , using public and private financing
mechanisms as yet undeterm-Lned Ex-imples of such
mechanisms include industrill revenue bonds , lease
agreements , lease agreements backed b) snles tz\
ievenue bonds , bond,, is,,ucd by a puu] lc bu> ldiIII,
authority , private loans , and others
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i
2. Site Review Inasmuch as the buildings contemplated are
igh-rise, the City' s Height Ordinance requires a plan
review Present zoning is not inappropriate for the
contemplated uses
3 Parkinq The parking requirements of the City state two
2 parking spaces per three (3) employees The devel-
oper is allowed to decide how many parking spaces for
clients or customers are needed above that amount. The
actual number of parking spaces will depend upon final
gross leasable area finally settled upon by the devel-
oper.
The project will bear the cost of developing as many
parking stalls in the structure as is possible on a
maximum of three floors and the City will lease from the
project the excess number of spaces that exist between
the required spaces and those available.
4 Development Schedule and Consent The Developer agrees
to provide the City with a proposed development schedule
indicating, among other things, the time frame in which
approvals need to be given, building permits issued, and
construction commenced
5 Financial Information Since financing mechanisms are
not yet set, but a joint public/private financing mecha-
nism is contemplated, the Developer agrees that financial
statements and other documentation needed to demonstrate
financial capacity will be provided
B City Responsibilities
1. Paging Any properties needed to be acquired for
parking will be acquired by the City as part of project
cost It is contemplated that the properties identified,
but not limited thereto, as Exhibit "B" attached hereto
will be necessary
Demolition necessary will also be a project cost
Title to the proportionate share of the parking struc-
ture, including support columns, needed by the office
buildings and restaurant and the underlying land appli-
cable thereto shall be conveyed to the owners of those
buildings when financing is amortized The remaining
share of the structure shall be in the City ownership
The City will operate and maintain the parking structure
for the period of time financing obligations remain
outstanding Costs and expenses of operation will be
levied upon users proportionately
2 Pedestrian Mall and Mason Street The project will
finance and the City will approve the extension of the
College Avenue pedestrian mall along Mountain Avenue
westward to Mason Street Mason Street will be developed
from Mountain Avenue to Cherry Street The street
development cost will be financed by the project
3 The City understands that it may be necessary to have
certain alleys and utility easements in the vicinity
of the subject property vacated , At such time as vaca-
tion becomes necessary, th-- Cit; , upon written request by
the Developer, agrees to proceed by ordinance to vacate
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said alleys , provided that such vacation appears to
be reasonable and necessary under the circumstances
Cuirent ownership of land is held by different owners
and the pasties hereto agree to solve the ownership
problems to comply with the iequired financial vehicle
jointly approved, in order to accommodate the con-
struction and development financing for parking
structures , the two office buildings , and restaurant
C Railroad Responsibilities
1 Track Relocation The C$S needs to relocate the
trackage alignment between Mountain and Cherry Streets
to accommodate project boundaries as approximated on
Exhibit "A" The switch yard operation in that
location may also need to be moved in due course
to locations outside of project boundaries . The
City agrees to assist the CF,S in acquiring the rail-
road right-of-way, where necessary, however, the
assistance offered will not be monetary
2 The right-of-way needed for development of Mason
Street will be dedicated as needed by the C&S. It
is the intent to establish a standard street section
as exists on Mason Street south of Mountain Avenue,
and a median will be provided in the center for a
single railroad track operation with curb and gutter
on each side of the track except at cross streets
and in other locations required by development
Direct costs incurred by the railroad in the develop-
ment of Mason Street applicable to the various phases
may be included in the total project costs
3 The C&S will be exempt from any financial investment
requirement within the project boundaries Also , the
C&S will not be responsible for any cost pertaining
to relocation of existing or construction of new
railway operating trackage or facilities
ARTICLE III FUTURE PHASES
A Phase II The Developers anticipate that Phase IJ of the
development will consist of residential units , north of Phase I , possib
financed by industrial revenue bonds or some other financing mechanism
available by law that may be approved and issued by the City It is
contemplated, assuming a viable market, that construction on Phase II
of the development would begin within two (2) years , more or less ,
of the execution of this Agieement The development of Pliase II would
be on property owned by the C$S, and possibly other selected parcels
of land not now owned by the C&,S immediately south of Martinez Pall.
B Phase III Phase III is proposed to be built by the Devel-
oper as a hotel of approximately two hundred fifty (250) looms with re-
tail space and a convention centei seating approximately twenty - fixe
hundred (2 , 500) persons It is anticipated by the pasties that if
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the convention center is developed, the pities hereto may dc,sire
to enter into a lelsc/purc'iisc agreement whereby the City would
lease and operate the center for a period of years , with ownership
of the facility transferring to the City at the end of the lease
term
ARTICLE IV NATURE OF AGREEMENT
This Agreement is conceptual in nature , detailed terms
and conditions relating to any or all phases of the development
are to be incorporated in a later definitive agreement or agree-
ments It is recognized that any such agreement (s) shall require
action by the appropriate policy bodies of the parties , including
Boards of Directors of the C&S and the Developer
ARTICLE V TIME OF THE ESSENCE
This Memorandum of Understanding is to be executed on or
before July 15 , 1980
IN WITNESS WHEREOF, the parties hereto have caused this
Memorandum of Understanding to be signed the day and year first
above written
THE CITY OF FORT COLLINS, COLORADO
ATTEST A Municipal Corporation
By
Cit—y C1er City Manager
o y THE COLORADO AND SOUTHERN RAILWAY COM -\�P,
ATTEST ail A Colorado Corporation
By
Secretai y Prudent
BNL DEVELOPMENT CORPORATION
ATTEST A Delaware Corporation
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